1. Should you exaggerate in the Market Analysis in order to make your investment
ID: 377385 • Letter: 1
Question
1. Should you exaggerate in the Market Analysis in order to make your investment more attractive?
2. What's wrong with the argument that "if I could get 1% of a huge market, then we would all be rich?"
3. What is the Market and Sales Plan section of a business plan and what's its purpose? Provide an example.
4. Do you really understand your customers buying patterns? If so, explain in detail. If not, ascertain how you might go about discovering this. Explain.
5. Relative to the rest of the plan, how much effort should you put into the market and sales plan?
Explanation / Answer
1. the basic objective of any investment is getting good returns with potentially less risk. for this investors may approach and follow different methods to study the market. some may go with fundamental analysis, some may go with technical tools like charts, candles, some may go with statistical analysis and so on. but an investor should aware of the market pulse, how the market is moving, what factors impact on the market, what is the best time to enter into the market and exit from the market. i plan to invest my funds based on these characteristics, of course also consider the trend too.
2. gaining and losing; these two are common in market. no one becomes the world richest with 1% gain and no one becomes so poor with 1% loss. these are only two outcomes from market actions, and every one experience it. the investment guru Warran Buffet may also invested in many shares which provides losses. but he is calling as moern investment guru. one or two actions does not chagne the fate of a person, it is a series of activities will determine.
3. the survival of any business completely depends on its sales and turnover. every firm has to sell its product in market or service in market and generate revenues. these revenues helps the firm to reach its goals and meet its obligations. hence every firm will plan it. they estimate potential demand for their product for a specific period, next they prepare production schedules, purcahse materials and arrange all inputs. based on all inputs and production levels, they will prepare sales plan by dividing the market into niche level. for this they divides total market into some submarkets based on characteristics and submarket wise they plan slaes.
for example i produced bakery items in a town, for this i need to have the total population, how many of they regularly prefers to visit bakeries, what kind of product they prefers more, what are the peak hours or days for bakery item sales, and so on. based on this information i will prepare the scheduels for purchase of materials, production, sales etc. other wise it may leads to huge stock of unsold items or too short to meet market demand.
4. it is very difficult to answer. no producer have complete idea about customer buying patterns. similarly they are not blind about the patterns, they have some knowledge and information, some may be assumed; based on these they may proceed. aspects like consumer income, availability of alternatives, nature of product and utility, and so on, all these factors will drive the consumer to buy a product or service. these factors will considered by the producer also to estimate the buyiing patterns of consumers and proceed by the producers.
5. there should not any limitations or lazyness about impelementation of market or sales plan. if so, the total strategy will be failed.
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